The point is that the penalty should fit the crime.
Cutting a thief's hand off discourages theft, but I don't think anyone here would argue that as a penalty it is too severe--because it does not fit the crime. Likewise, being penalized ~$40k for "stealing" 37 songs cannot be said to fit the crime.
Less than $1000 fine per theft? Seems perfectly reasonable to me. Comparing a $750 fine to chopping off hands is interesting, though.